ORERA crackdown: 'Defiant' real estate developer issued ‘show-cause’ over arrest warrant

The Certificate Officer-cum-ADM Bhubaneswar has issued a show-cause notice to M/s. Vipul Limited, Vipul Galleria in Ghatikia locality stating why its managing director should not be arrested for non-compliance to a previous order of Odisha Real Estate Regulatory Authority (ORERA). The company is to reply by December 31, an official source said on Thursday.

The real estate sector in Odisha is under scrutiny as developers appear to disregard orders from the ORERA.

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The case has reached the Supreme Court, which issued a directive that has pushed local authorities into action. Amid this escalating matter, the Bhubaneswar administration has dispatched the show-cause notice prior to considering arrest warrant.

According to sources, prompted by the Supreme Court’s orders, the administration sent the show-cause notice, which details the company’s failure to deposit Rs 87,94,551 against certificate case (No-6, 2023). A deadline of December 31 has been set for their reply.

In addition, Vipul Limited has not disbursed a total compensation amounting to Rs 14.18 Crore to at least 18 house buyers, in line with ORERA’s directives. According to the Odisha Protection of Interests of Depositors (OPID) Act, after an ORERA order, it falls upon the Additional District Magistrate (ADM) to execute the recovery from developers.

Despite this, several similar cases remain unresolved at the Bhubaneswar ADM's office.

This situation has turned active following a petition linked to another incident, with the ADM in Bhubaneswar now making concerted efforts to enforce compliance. Real estate officials acknowledge a prolonged trend of developers neglecting ORERA’s directives, with scant action taken in accordance with the OPID Act.

The real estate association advises that a company dissatisfied with an ORERA order has the right to appeal to either a tribunal or the Orissa High Court, and pending such appeals, enforcement of the original order is not mandated.

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Meanwhile, Urban Development Minister Krushna Chandra Mahapatra is examining why ORERA orders have gone unenforced and has assured that measures will be taken to ensure full compensation is realised following judicial orders.

“The matter is now duly being investigated and necessary steps will be taken on it. The Revenue Minister is also giving importance to the matter. We will discuss and accordingly, a decision will be taken,” the Urban Development Minister said to mediapersons.